Rhagor o Adnoddau

Status:

SCHEDULE 1Revenue Scotland

Membership

1(1)Revenue Scotland is to consist of no fewer than 5 and no more than 9 members appointed by the Scottish Ministers.

(2)Ministers are to appoint one of the members to chair Revenue Scotland (“the Chair”).

(3)Ministers may by order amend sub-paragraph (1) so as to substitute a different number for the minimum or maximum number of members for the time being specified there.

(4)Membership of Revenue Scotland is for such period and on such terms as Ministers may determine.

(5)A member may resign by giving notice in writing to Ministers.

(6)A person who is (or who has been) a member may be reappointed.

Disqualification

2(1)A person may not be appointed as a member of Revenue Scotland (and may not continue as a member) if that person—

(a)is (or becomes)—

(i)a member of the Scottish Parliament,

(ii)a member of the House of Commons,

(iii)a member of the National Assembly for Wales,

(iv)a member of the Northern Ireland Assembly,

(v)a member of the European Parliament,

(vi)a councillor of any local authority,

(vii)a member of the Scottish Government,

(viii)a Minister of the Crown,

(ix)an office-holder of the Crown in right of Her Majesty’s Government in the United Kingdom,

(x)an office-holder in the Scottish Administration,

(xi)a civil servant,

(b)is (or has been) insolvent,

(c)is (or has been) disqualified as a company director under the Company Directors Disqualification Act 1986 (c.46) (or any analogous disqualification provision, anywhere in the world), or

(d)is (or has been) disqualified as a charity trustee under the Charities and Trustee Investment (Scotland) Act 2005 (asp 10) (or any analogous disqualification provision, anywhere in the world).

(2)For the purposes of sub-paragraph (1)(b) a person is (or has been) insolvent if—

(a)the person’s estate is or has been sequestrated,

(b)the person has granted a trust deed for creditors or has made a composition or arrangement with creditors,

(c)the person is (or has been) the subject of any other kind of arrangement analogous to those described in paragraphs (a) and (b), anywhere in the world.

Removal of members

3The Scottish Ministers may, by giving notice in writing, remove a member if—

(a)any of sub-paragraphs (1)(a) to (d) of paragraph 2 apply to the member,

(b)the member has been absent from meetings of Revenue Scotland for a period longer than 6 months without permission from Revenue Scotland, or

(c)Ministers consider that the member is otherwise unfit to be a member or is unable to carry out the member’s functions.

Remuneration and expenses

4(1)Revenue Scotland may pay to—

(a)its members, and

(b)the members of any committee established by it,

such remuneration as it may, with the approval of the Scottish Ministers, determine.

(2)Revenue Scotland may pay to—

(a)its members, and

(b)the members of any committee established by it,

such sums as it may, with the approval of Ministers, determine by way of reimbursement of expenses incurred by them in carrying out their functions.

Committees

5(1)Revenue Scotland may establish committees for any purpose relating to its functions.

(2)Revenue Scotland may determine the composition of its committees.

(3)Revenue Scotland may appoint persons who are not members of Revenue Scotland to be members of a committee, but those persons are not entitled to vote at meetings of the committee.

Procedure

6(1)Revenue Scotland may regulate its own procedure (including quorum) and that of any committee.

(2)The validity of any proceedings or acts of Revenue Scotland (or of any committee) is not affected by—

(a)any vacancy in its membership,

(b)any defect in the appointment of a member, or

(c)disqualification of a person as a member after appointment.

Internal delegation by Revenue Scotland

7(1)Revenue Scotland may authorise—

(a)a member,

(b)a committee, or

(c)the chief executive or any other member of staff,

to exercise such of its functions (and to such extent) as it may determine.

(2)Sub-paragraph (1) does not affect Revenue Scotland’s responsibility for the exercise of its functions.

Chief executive and other staff

8(1)Revenue Scotland is to employ a chief executive.

(2)The person employed as chief executive may not be a member of Revenue Scotland.

(3)The first person employed as chief executive is to be appointed by the Scottish Ministers on such terms as they may determine.

(4)Before appointing the first chief executive, Ministers must consult the Chair (if a person holds that position).

(5)Each subsequent chief executive is to be appointed by Revenue Scotland on such terms as it may, with the approval of Ministers, determine.

(6)Revenue Scotland may appoint other members of staff on such terms as it may, with the approval of Ministers, determine.

Powers

9In addition to any other powers it has, Revenue Scotland may do anything which it considers—

(a)necessary or expedient in connection with the exercise of its functions,

(b)incidental or conducive to the exercise of those functions.

SCHEDULE 2The Scottish Tax Tribunals

(introduced by section 26(4))

PART 1Appointment of members

President of the Tax Tribunals: eligibility for appointment

1(1)A person is eligible for appointment as President of the Tax Tribunals only if the person—

(a)has the qualifications, experience and training in relation to tax law and practice that the Scottish Ministers consider appropriate, and

(b)meets the criteria in either sub-paragraph (2) or (3).

(2)A person meets the criteria in this sub-paragraph if the person is practising, and has practised for a period of not less than 10 years, as a solicitor or advocate in Scotland.

(3)The person meets the criteria in this sub-paragraph if the person falls within a description specified by the Scottish Ministers by regulations.

First-tier Tribunal: ordinary members

2(1)The Scottish Ministers must appoint persons as ordinary members of the First-tier Tribunal.

(2)Before appointing a person as an ordinary member, the Scottish Ministers must consult the Lord President.

(3)A person is eligible for appointment only if the person meets the criteria as to qualifications, experience and training that the Scottish Ministers prescribe by regulations.

First-tier Tribunal: legal members

3(1)The Scottish Ministers must appoint persons as legal members of the First-tier Tribunal.

(2)Before appointing a person as a legal member, the Scottish Ministers must consult the Lord President.

(3)A person is eligible for appointment only if the person—

(a)has the qualifications, experience and training in relation to tax law and practice that the Scottish Ministers consider appropriate, and

(b)meets the criteria in either sub-paragraph (1) or (2) of paragraph 4.

4(1)A person meets the criteria in this sub-paragraph if the person is practising, and has practised for a period of not less than 5 years, as a solicitor or advocate in Scotland.

(2)The person meets the criteria in this sub-paragraph if the person falls within a description specified by the Scottish Ministers in regulations.

Upper Tribunal: legal members

5(1)The Scottish Ministers must appoint persons as legal members of the Upper Tribunal.

(2)Before appointing a person as a legal member, the Scottish Ministers must consult the Lord President.

(3)A person is eligible for appointment only if the person—

(a)has the qualifications, experience and training in relation to tax law and practice that the Scottish Ministers consider appropriate, and

(b)meets the criteria in either sub-paragraph (1) or (2) of paragraph 6.

6(1)A person meets the criteria in this sub-paragraph if the person is practising, and has practised for a period of not less than 10 years, as a solicitor or advocate in Scotland.

(2)The person meets the criteria in this sub-paragraph if the person falls within a description specified by the Scottish Ministers in regulations.

Disqualification from office

7A person is disqualified from appointment, and from holding a position, as President of the Tax Tribunals or as a member of the Tax Tribunals if the person is or becomes—

(a)a member of the House of Commons,

(b)a member of the Scottish Parliament,

(c)a member of the National Assembly for Wales,

(d)a member of the Northern Ireland Assembly,

(e)a member of the European Parliament,

(f)a Minister of the Crown,

(g)a member of the Scottish Government,

(h)a civil servant.

Eligibility under regulations

8(1)Regulations under paragraph 4(2) may describe a person by reference to the matters mentioned in sub-paragraph (3), (4) or (8).

(2)Regulations under paragraph 1(3) or 6(2) may describe a person by reference to the matters mentioned in sub-paragraph (5), (6) or (8).

(3)The matter mentioned in this sub-paragraph (referred to in sub-paragraph (1)) is—

(a)current practice as a solicitor or barrister in England and Wales or Northern Ireland, and

(b)engagement in practice as such for a period of not less than 5 years.

(4)The matters mentioned in this sub-paragraph (also referred to in sub-paragraph (1)) are—

(a)previous practice for a period of not less than 5 years as—

(i)a solicitor or advocate in Scotland, or

(ii)a solicitor or barrister in England, Wales or Northern Ireland, and

(b)subsequent engagement in any of the activities listed in sub-paragraph (7).

(5)The matter mentioned in this sub-paragraph (referred to in sub-paragraph (2)) is—

(a)current practice as a solicitor or barrister in England and Wales or Northern Ireland, and

(b)engagement in practice as such for a period of not less than 10 years.

(6)The matters mentioned in this sub-paragraph (also referred to in sub-paragraph (2)) are—

(a)previous practice for a period of not less than 10 years as—

(i)a solicitor or advocate in Scotland, or

(ii)a solicitor or barrister in England, Wales or Northern Ireland, and

(b)subsequent engagement in any of the activities listed in sub-paragraph (7).

(7)The activities referred to in sub-paragraph (4)(b) and (6)(b) are—

(a)exercising judicial functions in any court or tribunal,

(b)practice or employment as a lawyer of any kind,

(c)whether or not in the course of practice or employment as a lawyer—

(i)advising on the application of the law,

(ii)drafting documents intended to affect rights or obligations under the law,

(iii)assisting persons involved in a legal or other process for the resolution of disputes as to the law,

(iv)acting as a mediator or arbitrator for the purpose of resolving disputes that are (or could be) the matter of legal proceedings,

(d)teaching or researching law at or for an educational institution.

(8)The matters mentioned in this sub-paragraph (also referred to in sub-paragraphs (1) and (2)) are suitability attributable to experience in law through current or previous engagement in—

(a)any of the activities listed in sub-paragraph (7), or

(b)an activity that is of a broadly similar nature to any of the activities listed in that sub-paragraph.

9(1)The Scottish Ministers may by regulations make provision—

(a)as regards the calculation of the 5-year period mentioned in paragraph 4(1) or 8(3) or (4)(a) (for example, by reference to recent or continuous time),

(b)as regards the calculation of the 10-year period mentioned in paragraph 1(2), 6(1) or 8(5) or (6)(a) (for example, by reference to recent or continuous time),

(c)to which paragraph 8(4)(a) or 8(6)(a) is subject (for example, by reference to debarment from practice),

(d)for the purpose of paragraph 8(8), about—

(i)the criteria for suitability (for example, by reference to equivalence to past or present practice as a solicitor),

(ii)the nature of experience required (for example, by reference to engagement for a particular period of time (within the United Kingdom or elsewhere)).

(2)The Scottish Ministers may by regulations modify the list in paragraph 8(7).

PART 2Conditions of membership etc.

Application of this Part

10(1)This Part of this schedule applies in relation to the positions of ordinary member and legal member of the Tax Tribunals (but not the position of judicial member of the tribunals).

(2)The following paragraphs of this Part also apply in relation to the position of President of the Tax Tribunals—

(a)paragraph 16 (with the modification that the reference in paragraph 16(c) to the President of the Tax Tribunals is to be read as a reference to the Scottish Ministers),

(b)paragraph 17.

Initial period of office

11A person who is appointed to a position as a member of the Tax Tribunals holds the position for the period of 5 years beginning with the date of the appointment.

Reappointment

12(1)Unless sub-paragraph (3) applies, a member of the Tax Tribunals is to be reappointed as such at the end of each period for which the position is held.

(2)Reappointment under sub-paragraph (1) is to the position for the period of 5 years beginning with the date of the reappointment.

(3)This sub-paragraph applies if—

(a)the member has declined to be reappointed,

(b)the member is ineligible for reappointment,

(c)the President of the Tax Tribunals has recommended to the Scottish Ministers that the member should not be reappointed.

(4)In sub-paragraph (1) the reference to the period for which a position is held is to—

(a)the period for which the position is held in accordance with paragraph 11, or

(b)any further period for which the position is held by virtue of reappointment in accordance with sub-paragraphs (1) and (2).

13For the purpose of paragraph 12(3)(b), a member is ineligible for reappointment only if the member would not be eligible for appointment to the position in accordance with the relevant provisions of Part 1 of this schedule were the member being appointed to the position for the first time.

14For the purpose of paragraph 12(3)(c), the President of the Tax Tribunals may recommend to the Scottish Ministers that a member should not be reappointed only if satisfied that—

(a)the member has failed to comply with—

(i)any of the relevant terms and conditions of membership, or

(ii)any other requirement imposed on the member by or under this Act, or

(b)the tribunal concerned no longer requires—

(i)a member with the qualifications, experience and training of that member, or

(ii)the same number of members for the efficient disposal of its business.

Appointment to position of President

15(1)Sub-paragraph (2) applies where a legal member of the First-tier Tribunal or of the Upper Tribunal becomes by appointment President of the Tax Tribunals.

Judicial Complaints Reviewer

(a)on the request of a relevant person, to review the handling of an investigation carried out in accordance with rules made under paragraph 22(1) to consider whether the investigation has been carried out in accordance with the rules,

(b)in any case where the Reviewer considers that such an investigation has not been carried out in accordance with such rules, to refer the case to the Scottish Ministers,

(c)as directed by the Scottish Ministers, to prepare and publish reports on the investigations carried out in pursuance of such rules, and

(d)to make written representations to the Scottish Ministers about procedures for handling the investigation of matters concerning the conduct of members of the Tax Tribunals.

(3)The Scottish Ministers are to have regard to any written representations made under sub-paragraph (2)(d).

(4)In sub-paragraph (2)(a) “relevant person” means—

(a)the person whose complaint led to the carrying out of the investigation, or

(b)the member of the Tax Tribunals with respect to whom the investigation has been carried out.

29(1)Sub-paragraph (2) applies where a case is referred to the Scottish Ministers by the Judicial Complaints Reviewer under paragraph 28(2)(b).

(2)The Scottish Ministers may—

(a)vary or revoke wholly or partly the determination made in the case to which the investigation relates,

(b)cause a fresh investigation to be carried out,

(c)confirm the determination in the case, or

(d)deal with the referral in such other way as the Scottish Ministers consider appropriate.

PART 4Fitness and removal

Application of this Part

30(1)This Part of this schedule applies in relation to the positions of ordinary member and legal member of the Tax Tribunals (but not the position of judicial member of the tribunals).

(2)This Part also applies to the position of the President of the Tax Tribunals subject to the modifications mentioned in paragraph 42.

Constitution and procedure

31(1)The Scottish Ministers must constitute a fitness assessment tribunal when requested to do so by the President of the Tax Tribunals.

(3)The function of a fitness assessment tribunal is to investigate and report on whether a member of the Tax Tribunals is unfit to hold the position of member of the tribunals.

32(1)The Scottish Ministers may make rules as to the procedure to be followed in proceedings at a fitness assessment tribunal.

(2)Rules under sub-paragraph (1) are to be published in such manner as the Scottish Ministers may determine.

Composition and remuneration

33(1)A fitness assessment tribunal is to consist of—

(a)one person who is, or has been—

(i)a judge of the Court of Session (except a temporary judge), or

(ii)a sheriff (except a part-time sheriff),

(b)one person who is—

(i)where the member under investigation is an ordinary member, another ordinary member,

(ii)where the member under investigation is a legal member, another legal member, and

(c)one person who does not fall (and has never fallen) within a category of person referred to in paragraph (a) or (b).

(2)The selection of persons to be members of the fitness assessment tribunal is to be made by the Scottish Ministers with the agreement of the Lord President.

34(1)The Scottish Ministers—

(a)must pay such expenses as they consider are reasonably required to be incurred to enable a fitness assessment tribunal to carry out its functions,

(b)may pay such remuneration to, and expenses of, any member of such a tribunal as they think fit.

(2)Sub-paragraph (1)(b) does not apply in relation to such a member if the member is a sheriff or a judge of the Court of Session.

Proceedings before fitness assessment tribunal

35(1)A fitness assessment tribunal may require any person—

(a)to attend its proceedings for the purpose of giving evidence,

(b)to produce documents in the person’s custody or under the person’s control.

(2)A person on whom such a requirement is imposed is not obliged to answer any question or produce any document which the person would be entitled to refuse to answer or produce in a court of law in Scotland.

36(1)Sub-paragraph (2) applies where a person on whom a requirement has been imposed under paragraph 35(1)—

(a)refuses or fails, without reasonable excuse—

(i)to comply with the requirement,

(ii)while attending the tribunal proceedings to give evidence, to answer any question,

(b)deliberately alters, conceals or destroys any document which the person is required to produce.

(2)The Court of Session may, on an application made to it by the tribunal—

(a)make such order for enforcing compliance or otherwise as it thinks fit, or

(b)deal with the matter as if it were a contempt of the Court.

Suspension during investigation

37(1)Sub-paragraph (2) applies if the President of the Tax Tribunals requests the Scottish Ministers to constitute a fitness assessment tribunal to investigate whether a member of the Tax Tribunals is unfit to hold the position of member of the tribunals.

(2)The President may suspend the member from the position at any time before the fitness assessment tribunal submits its report as required by paragraph 40(2).

(3)Suspension under sub-paragraph (2) lasts until (whichever is earlier)—

(a)the President revokes it, or

(b)the report is laid as required by paragraph 40(3).

38(1)Sub-paragraph (2) applies if a fitness assessment tribunal—

(a)recommends that a member of the Tax Tribunals who is subject to its investigation should be suspended from the position as member of the tribunals,

(b)does so in writing at any time before the fitness assessment tribunal submits its report as required by paragraph 40(2).

(2)The Scottish Ministers may suspend the member from the position at any time before laying the report as required by paragraph 40(3).

(3)Suspension under sub-paragraph (2) lasts until (whichever is earlier)—

(a)the Scottish Ministers revoke it, or

(b)the report is laid as required by paragraph 40(3).

39Suspension under paragraph 37(2) or 38(2) does not affect any remuneration payable to, or in respect of, the member concerned during the period of suspension.

Report and removal

40(1)A report by a fitness assessment tribunal must—

(a)be in writing, and

(b)contain reasons for its conclusions.

(2)As soon as reasonably practicable after it is completed, such a report must be submitted by the fitness assessment tribunal to—

(a)the Scottish Ministers, and

(b)the President of the Tax Tribunals.

(3)The Scottish Ministers must lay before the Scottish Parliament each report submitted under sub-paragraph (2).

41(1)If the relevant condition is met, the Scottish Ministers may remove a member of the Tax Tribunals from the position of member of the tribunals.

(2)The relevant condition is that a fitness assessment tribunal has submitted a report under paragraph 40(2) concluding that the member is unfit to hold the position of member of the Tax Tribunals.

Application of this Part to the President of the Tax Tribunals

42(1)This Part of this schedule applies in relation to the President of the Tax Tribunals with the following modifications.

(2)In paragraph 31, sub-paragraphs (1) and (2)(b) do not apply.

(3)Paragraph 33 is to apply in relation to a fitness assessment tribunal constituted to investigate and report on whether the President is unfit to hold that position as it applies to a legal member of the Tax Tribunals.

(4)In paragraph 37—

(a)sub-paragraph (1) does not apply,

(b)the references in sub-paragraphs (2) and (3)(a) to the President are to be read as references to the Scottish Ministers.

(5)Paragraph 40(2)(b) does not apply.

Interpretation

43In this Part of this schedule, the references to unfitness to hold the position of member of the Tax Tribunals are to unfitness by reason of inability, neglect of duty or misbehaviour.

SCHEDULE 3Claims for relief from double assessment and for repayment

(introduced by section 114)

Introduction

1This schedule applies to a claim under section 106, 107 or 108.

Making of claims

2(1)A claim must be made in such form as Revenue Scotland may determine.

(2)The form of claim must provide for a declaration to the effect that all the particulars given in the form are correctly stated to the best of the claimant's information and belief.

(3)The form of claim may require—

(a)a statement of the amount of tax that will be required to be discharged or repaid in order to give effect to the claim,

(b)such information as is reasonably required for the purpose of determining whether and, if so, the extent to which the claim is correct,

(c)the delivery with the claim of such statements and documents, relating to the information contained in the claim, as are reasonably required for the purpose mentioned in paragraph (b).

(4)A claim for repayment of tax may not be made unless the claimant has documentary evidence that the tax has been paid.

Duty to keep and preserve records

3(1)A person who wishes to make a claim must—

(a)keep such records as may be needed to enable the person to make a correct and complete claim, and

(b)preserve those records in accordance with this paragraph.

(2)The records must be preserved until the latest of the following times—

(a)the end of the period of 3 years beginning with the day on which the claim was made,

(b)where there is an enquiry into the claim, or into an amendment of the claim, the time when the enquiry is completed,

(c)where the claim is amended and there is no enquiry into the amendment, the time when Revenue Scotland no longer has power to enquire into the amendment.

(3)The Scottish Ministers may by regulations—

(a)provide that the records required to be kept and preserved under this paragraph include, or do not include, records specified in the regulations, and

(b)provide that those records include supporting documents so specified.

(4)Regulations under this paragraph may make provision by reference to things specified in a notice published by Revenue Scotland in accordance with the regulations (and not withdrawn by a subsequent notice).

Preservation of information etc.

(b)by preserving the information contained in them in any form and by any means, subject to any conditions or exceptions specified by Revenue Scotland.

Penalty for failure to keep and preserve records

5(1)A person (“P”) who fails to comply with paragraph 3 in relation to a claim that the person makes is liable to a penalty not exceeding £3,000, subject to the following exception.

(2)No penalty is incurred if Revenue Scotland is satisfied that any facts that it reasonably requires to be proved, and that would have been proved by the records, are proved by other documentary evidence provided to it.

Reasonable excuse for failure to keep and preserve records

6(1)If P satisfies Revenue Scotland or (on appeal) the tribunal that there is a reasonable excuse for a failure to comply with paragraph 3, liability to a penalty under paragraph 5 does not arise in relation to that failure.

(2)For the purposes of sub-paragraph (1)—

(a)an insufficiency of funds is not a reasonable excuse unless attributable to events outside P’s control,

(b)where P relies on any other person to do anything, that is not a reasonable excuse unless P took reasonable care to avoid the failure, and

(c)where P had a reasonable excuse for the failure but the excuse has ceased, P is to be treated as having continued to have the excuse if the failure is remedied without unreasonable delay after the excuse ceased.

Assessment of penalties under paragraph 5

(2)An assessment of a penalty under paragraph 5 must be made within the period of 12 months beginning with the date on which the person became liable to the penalty.

Enforcement of penalties under paragraph 5

8(1)A penalty under paragraph 5 must be paid—

(a)before the end of the period of 30 days beginning with the date on which the notification under paragraph 7 was issued,

(b)if a notice of review against the penalty is given, before the end of the period of 30 days beginning with the date on which the review is concluded,

(c)if, following review, mediation is entered into, before the end of the period of 30 days beginning with the date either Revenue Scotland or the person who gave the notice of review gave notice of withdrawal from mediation, or

(d)if a notice of an appeal against the penalty is given, before the end of the period of 30 days beginning with the date on which the appeal is determined or withdrawn.

(2)A penalty under paragraph 5 is to be treated for enforcement purposes as an assessment to tax.

Power to change penalty provisions in paragraphs 5 to 8

9(1)The Scottish Ministers may by regulations make provision (or further provision) about penalties under paragraphs 5 to 8.

(2)Regulations under sub-paragraph (1) may include provision—

(a)about the circumstances in which a penalty is payable,

(b)about the amounts of penalties,

(c)about the procedure for issuing penalties,

(d)about appealing penalties,

(e)about enforcing penalties.

(3)Regulations under sub-paragraph (1) may not create criminal offences.

(4)Regulations under sub-paragraph (1) may modify any enactment (including this Act).

(5)Regulations under sub-paragraph (1) do not apply to a failure which began before the date on which the regulations come into force.

(ii)ending with the day on which the enquiry under that paragraph is completed.

(3)A correction under this paragraph is of no effect if, within 3 months from the date of issue of the notice of correction, the claimant gives notice rejecting the correction.

(4)Notice under sub-paragraph (3) must be given to Revenue Scotland.

Giving effect to claims and amendments

12(1)As soon as practicable after a claim is made, amended or corrected under paragraph 10 or 11, Revenue Scotland must give effect to the claim or amendment by discharge or repayment of tax.

(2)Where Revenue Scotland enquires into a claim or amendment—

(a)sub-paragraph (1) does not apply until a closure notice is given under paragraph 14 (completion of enquiry), and then it applies subject to paragraph 16 (giving effect to amendments under paragraph 14), but

(b)Revenue Scotland may at any time before then give effect to the claim or amendment, on a provisional basis, to such extent as it thinks fit.

Notice of enquiry

13(1)Revenue Scotland may enquire into a person's claim or amendment of a claim if it gives the claimant notice of its intention to do so (“notice of enquiry”) before the end of the period of 3 years after the day on which the claim was made.

(2)A claim or amendment that has been the subject of one notice of enquiry may not be the subject of another.

Completion of enquiry

14(1)An enquiry under paragraph 13 is completed—

(a)when Revenue Scotland by notice (a “closure notice”) informs the claimant that it has completed its enquiries and states its conclusions, or

(b)no closure notice having been given, 3 years after the date on which the claim was made.

(2)A closure notice must be given no later than 3 years after the date on which the claim was made.

(3)A closure notice must either—

(a)state that in the opinion of Revenue Scotland no amendment of the claim is required, or

(b)if in Revenue Scotland's opinion the claim is insufficient or excessive, amend the claim so as to make good or eliminate the deficiency or excess.

(4)In the case of an enquiry into an amendment of a claim, sub-paragraph (3)(b) applies only so far as the deficiency or excess is attributable to the amendment.

(5)A closure notice takes effect when it is issued.

Direction to complete enquiry

15(1)The claimant may apply to the tribunal for a direction that Revenue Scotland gives a closure notice within a specified period.

(2)Any such application is to be subject to the relevant provisions of tribunal rules.

(3)The tribunal must give a direction unless satisfied that Revenue Scotland has reasonable grounds for not giving a closure notice within a specified period.

Giving effect to amendments under paragraph 14

16(1)Within 30 days after the date of issue of a notice under paragraph 14(3)(b) (closure notice that amends claim), Revenue Scotland must give effect to the amendment by making such adjustment as may be necessary, whether—

(a)by way of assessment on the claimant, or

(b)by discharge or repayment of tax.

(2)An assessment made under sub-paragraph (1) is not out of time if it is made within the time mentioned in that sub-paragraph.

Appeals against amendments under paragraph 14

17(1)An appeal may be brought against a conclusion stated or amendment made by a closure notice.

(2)Notice of the appeal must be given—

(a)within 30 days after the date on which the closure notice was issued,

(b)to the tribunal.

(3)The notice of appeal must specify the grounds of appeal.

(4)Part 11 (reviews and appeals) applies in relation to an appeal under this paragraph as it applies in relation to an appeal under that Part.

(5)On an appeal against an amendment made by a closure notice, the tribunal may vary the amendment appealed against whether or not the variation is to the advantage of the appellant.

(6)Where any such amendment is varied, whether by the tribunal or by the order of a court, paragraph 16 (giving effect to amendments under paragraph 14) applies (with the necessary modifications) in relation to the variation as it applied in relation to the amendment.

SCHEDULE 4Minor and consequential modifications

(introduced by section 256)

Debtors (Scotland) Act 1987

“(da)in an action by or on behalf of Revenue Scotland for payment of any sum recoverable under or by virtue of the Revenue Scotland and Tax Powers Act 2014 (asp 16) or any other enactment in respect of a devolved tax, under a contract settlement or under a settlement agreement,”,

(b)after subsection (8A) insert—

“(8B)In paragraph (da) of subsection (5)—

“contract settlement” means any agreement made in connection with any person’s liability to make a payment to Revenue Scotland under or by virtue of the Revenue Scotland and Tax Powers Act 2014 (asp 16) or any other enactment in respect of a devolved tax,

“devolved tax” has the meaning given by section 80A(4) of the Scotland Act 2012 (c. 46),

“settlement agreement” has the meaning given by section 246(1) of the Revenue Scotland and Tax Powers Act 2014 (asp 16).”.

(3)In section 5 (time to pay orders)—

(a)in subsection (4), after paragraph (d) insert—

“(da)in relation to a debt including any sum recoverable by or on behalf of Revenue Scotland under or by virtue of the Revenue Scotland and Tax Powers Act 2014 (asp 16) or any other enactment in respect of a devolved tax, under a contract settlement or under a settlement agreement,”,

(b)after subsection (8A) insert—

“(8B)In paragraph (da) of subsection (4)—

“contract settlement” means any agreement made in connection with any person’s liability to make a payment to Revenue Scotland under or by virtue of the Revenue Scotland and Tax Powers Act 2014 (asp 16) or any other enactment in respect of a devolved tax,

“devolved tax” has the meaning given by section 80A(4) of the Scotland Act 2012 (c. 46),

“settlement agreement” has the meaning given by section 246(1) of the Revenue Scotland and Tax Powers Act 2014 (asp 16).”.

Environment Act 1995

“(1A)Nothing in this section authorises the disclosure by SEPA of protected taxpayer information which was obtained by SEPA in connection with a function of Revenue Scotland delegated to it by Revenue Scotland under section 4(1)(b) of the Revenue Scotland and Tax Powers Act 2014 (asp 16).”,

“(1A)Nothing in this section authorises the disclosure by SEPA to any person of protected taxpayer information which was obtained by SEPA in connection with a function of Revenue Scotland delegated to it by Revenue Scotland under section 4(1)(b) of the Revenue Scotland and Tax Powers Act 2014 (asp 16).”,

““protected taxpayer information” has the meaning given by section 14 of the Revenue Scotland and Tax Powers Act 2014 (asp 16),”.

Public Finance and Accountability (Scotland) Act 2000

3In section 9(1) of the Public Finance and Accountability (Scotland) Act 2000 (asp 1) (Keeper of the Registers of Scotland: financial arrangements), after “Sums” insert “(other than payments of or in connection with land and buildings transaction tax)”.

Ethical Standards in Public Life etc. (Scotland) Act 2000

4In the Ethical Standards in Public Life etc. (Scotland) Act 2000 (asp 7), in schedule 3 (devolved public bodies), at the appropriate place in alphabetical order insert—

“Revenue Scotland”.

Freedom of Information (Scotland) Act 2002

5In the Freedom of Information (Scotland) Act 2002 (asp 13), in Part 2 of schedule 1 (Scottish public authorities), at the appropriate place in alphabetical order insert—

“Revenue Scotland”.

Public Appointments and Public Bodies etc. (Scotland) Act 2003

6In the Public Appointments and Public Bodies etc. (Scotland) Act 2003 (asp 4), in schedule 2 (the specified authorities), under the heading “Executive bodies” at the appropriate place in alphabetical order insert—

“Revenue Scotland”.

Public Services Reform (Scotland) Act 2010

7In the Public Services Reform (Scotland) Act 2010 (asp 8), in schedule 8 (listed public bodies), at the appropriate place in alphabetical order insert—

“Revenue Scotland”.

Public Records (Scotland) Act 2011

8In the Public Records (Scotland) Act 2011 (asp 12), in the schedule, under the heading “Scottish Administration” at the appropriate place in alphabetical order insert—

“(2A)For the period allowed for amendment of returns, see section 83 of the Revenue Scotland and Tax Powers Act 2014 (asp 16).”.

(6)In section 35 (form and content of returns), in subsection (1)—

(a)the word “and” after paragraph (a) is repealed,

(b)after paragraph (b) insert “, and

(c)be made in such manner as specified by the Tax Authority.”.

(7)Section 37 (amendment of returns) is repealed.

(8)After section 37 insert—

“37ACommunications from taxpayers to the Tax Authority

(1)Any notice, application or other thing that a person is required or permitted by provision made in or under this Act to give to the Tax Authority must comply with the requirements set out in subsection (2).

(2)The requirements are that the thing—

(a)must be in the form specified by the Tax Authority,

(b)must contain the information specified by the Tax Authority, and

(c)must be given in the manner specified by the Tax Authority.

(3)Subsections (1) and (2) are subject to any different provision made in or under this Act.”.

“PART 3ARecovery of relief

42ARecovery of relief

(a)relief under this schedule is withdrawn or partially withdrawn and tax is chargeable,

(b)the amount so chargeable has been finally determined, and

(c)the whole or part of the amount so chargeable is unpaid 6 months after the date on which it became payable.

42BThe following persons may, by notice under paragraph 42E, be required to pay the unpaid tax—

(a)the seller,

(b)any company that at any relevant time was a member of the same group as the buyer and was above it in the group structure,

(c)any person who at any relevant time was a controlling director of the buyer or a company having control of the buyer.

42CFor the purposes of paragraph 42B(b)—

(a)a “relevant time” means any time between the effective date of the transaction which was exempt from charge by virtue of this schedule and the buyer ceasing to be a member of the same group as the seller, and

(b)a company (“company A”) is “above” another company (“company B”) in a group structure if company B, or another company that is above company B in the group structure, is a 75% subsidiary of company A.

42DIn paragraph 42B(c)—

“director”, in relation to a company, has the meaning given by section 67(1) of the Income Tax (Earnings and Pensions) Act 2003 (c.1) (read with subsection (2) of that section) and includes a person falling within section 452(1) of the Corporation Tax Act 2010 (c.4),

“controlling director”, in relation to a company, means a director of the company who has control of it (construing control in accordance with sections 450 and 451 of the Corporation Tax Act 2010 (c.4)).

42ERecovery of relief: supplementary

The Tax Authority may give notice to a person within paragraph 42B requiring that person within 30 days of receipt of the notice to pay the amount that remains unpaid.

42FAny such notice must be given before the end of the period of 3 years beginning with the date of the final determination mentioned in paragraph 42A(b).

42GThe notice must state the amount required to be paid by the person to whom the notice is given.

42HThe notice has effect—

(a)for the purposes of the recovery from that person of the amount required to be paid and of interest on that amount, and

(b)for the purpose of appeals,

as if it were a notice of a Revenue Scotland assessment and that amount were an amount of tax due from that person.

42IA person who has paid an amount in pursuance of a notice under paragraph 42E may recover that amount from the buyer.

42JA payment in pursuance of a notice under paragraph 42E is not allowed as a deduction in computing any income, profits or losses for any tax purpose.

42KIn paragraph 42H, “Revenue Scotland assessment” has the same meaning as in section 100 of the Revenue Scotland and Tax Powers Act 2014 (asp 16).”.

(21)In schedule 11 (reconstruction relief and acquisition relief)—

(a)in paragraph 1(2), after “withdrawn” insert—

“Part 4A provides for recovery of tax where relief is withdrawn,”,

(b)in paragraph 5, for “(c) and (d)” substitute “(b) and (c)”,

(c)in paragraph 9(a), for second “person” substitute “persons”,

(d)after paragraph 35 insert—

“PART 4ARecovery of relief

35ARecovery of relief

This Part applies where—

(a)relief under Part 2 or Part 3 of this schedule is withdrawn or partially withdrawn,

(b)the amount of tax chargeable has been finally determined, and

(c)the whole or part of the amount so chargeable is unpaid 6 months after the date on which it became payable.

35BThe following persons may, by notice under paragraph 35E, be required to pay the unpaid tax—

(a)any company that at any relevant time was a member of the same group as the acquiring company and was above it in the group structure,

(b)any person who at any relevant time was a controlling director of the acquiring company or a company having control of the acquiring company.

35CFor the purposes of paragraph 35B—

(a)“relevant time” means any time between the effective date of the relevant transaction and the change of control by virtue of which tax is chargeable, and

(b)a company (“company A”) is “above” another company (“company B”) in a group structure if company B, or another company that is above company B in the group structure, is a 75% subsidiary of company A.

35DIn paragraph 35B(b)—

“director”, in relation to a company, has the meaning given by section 67(1) of the Income Tax (Earnings and Pensions) Act 2003 (c.1) (read with subsection (2) of that section) and includes a person falling within section 452(1) of the Corporation Tax Act 2010 (c.4),

“controlling director”, in relation to a company, means a director of the company who has control of it (construing control in accordance with sections 450 and 451 of the Corporation Tax Act 2010 (c.4)).

35ERecovery of relief: supplementary

The Tax Authority may give notice to a person within paragraph 35B requiring that person within 30 days of receipt of the notice to pay the amount that remains unpaid.

35FAny such notice must be given before the end of the period of 3 years beginning with the date of the final determination mentioned in paragraph 35A(b).

35GThe notice must state the amount required to be paid by the person to whom the notice is given.

35HThe notice has effect—

(a)for the purposes of the recovery from that person of the amount required to be paid and of interest on that amount, and

(b)for the purpose of appeals,

as if it were a notice of a Revenue Scotland assessment and that amount were an amount of tax due from that person.

35IA person who has paid an amount in pursuance of a notice under paragraph 35E may recover that amount from the acquiring company.

35JA payment in pursuance of a notice under paragraph 35E is not allowed as a deduction in computing any income, profits or losses for any tax purpose.

35KIn paragraph 35H, “Revenue Scotland assessment” has the same meaning as in section 100 of the Revenue Scotland and Tax Powers Act 2014 (asp 16).”.

(22)In schedule 17 (partnerships)—

(a)in paragraph 35 (election by property-investment partnership)—

(i)in sub-paragraph (1), for “paragraph” substitute “Part”,

(ii)after sub-paragraph (3) insert—

“(3A)For the period allowed for amendment of returns, see section 83 of the Revenue Scotland and Tax Powers Act 2014 (asp 16).”,

“(7)The regulations may include provision for penalties where a person fails to comply with a requirement imposed by or under the regulations.”.

(3)In section 18 (credit: general), after subsection (6) insert—

“(6A)The regulations may provide for section 107 of the Revenue Scotland and Tax Powers Act 2014 (asp 16) to apply (with or without modifications) to a claim under this section by a person who has ceased to be registrable as it applies to a claim under that section.”.

(6)In section 25 (accounting for tax and time for payment), for paragraph (b) substitute—

“(b)make returns in relation to such accounting periods,”.

(7)After section 25 insert—

“25AForm and content of returns

(1)A return under this Act must—

(a)be in the form specified by the Tax Authority,

(b)contain such information specified by the Tax Authority, and

(c)be made in such manner as specified by the Tax Authority.

(2)The Tax Authority may specify different forms and information for different kinds of return.

(3)A return is treated as containing any information provided by the person making it for the purpose of completing the return.

25BCommunications from taxpayers to the Tax Authority

(1)Any notice, application or other thing that a person is required or permitted by provision made in or under this Act to give to the Tax Authority must comply with the requirements set out in subsection (2).

(2)The requirements are that the thing—

(a)must be in the form specified by the Tax Authority,

(b)must contain the information specified by the Tax Authority, and

(c)must be given in the manner specified by the Tax Authority.

(3)Subsections (1) and (2) are subject to any different provision made in or under this Act.”.

“(10A)The entries in paragraphs 10A and 10B relate to the functions exercisable by the First-tier Tax Tribunal for Scotland and the Upper Tax Tribunal for Scotland by virtue of the Revenue Scotland and Tax Powers Act 2014 or any other enactment.”.

Procurement Reform (Scotland) Act 2014

12In the Procurement Reform (Scotland) Act 2014 (asp 12), in Part 1 of the schedule (contracting authorities: Scottish Administration and Scottish Parliament), after paragraph 13 (the entry for the Scottish Housing Regulator) insert—

“13ARevenue Scotland”.

SCHEDULE 5Index of defined expressions

(introduced by section 253)

Expression

Interpretation provision

LBTT(S) Act 2013

section 252

LT(S) Act 2014

section 252

appealable decision

section 233

appellant

section 234(1)

business assets

section 141(4)

business documents

section 141(4)

business premises

section 141(4)

carrying on a business

section 121

closure notice

section 93(1) (for the purposes of Part 6) and paragraph 14(1) of schedule 3 (for the purposes of that schedule)

contact details

section 227(4)

contract settlement

section 118(8)

designated officer

section 252

devolved taxes

section 3(3)

filing date

section 82

First-tier Tribunal

section 21(5)(a)

general anti-avoidance rule

section 62(2)

information notice

section 131(1)

judicial member

section 61

Keeper

section 4(1)(a)

legal member

section 61

Lord President

section 61

matter in question

section 250(1)

notice of appeal

section 252

notice of enquiry

section 85(5) (for the purposes of Part 6) and paragraph 13(1) of schedule 3 (for the purposes of that schedule)

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